Rhode Island Code of Regulations
Title 230 - Department of Business Regulation
Chapter 20 - Insurance
Subchapter 25 - LIFE AND ANNUITIES
Part 7 - Modified Guaranteed Annuities (230-RICR-20-25-7)
Section 230-RICR-20-25-7.7 - Modified Guaranteed Annuity Contract Requirements

a. A provision that there shall be a grace period of thirty (30) days or one month during which the contract shall remain in force and within which any payment due to the insurer other than the first may be made. The contract may include a statement of the basis for determining the date as of which any such payment received during the grace period shall be applied to produce the values under the contract.

b. A provision that, at any time within one year from the date of default, the contract may be reinstated upon payment to the insurer of such overdue payments as required by contract and of all indebtedness to the insurer on the contract, including interest. Reinstatement may not occur if the cash value has been paid. The contract may include a statement of the basis for determining the date as of which the amount to cover such overdue payments and indebtedness shall be applied to produce the values under the contract.

c. A provision that, to the extent set out in the contract, the portion of the assets of any separate account which equal the reserves and other contract liabilities of the account shall not be chargeable with liabilities arising out of any other business of the company.

a. Reinsurance;

b. Group annuity contracts purchased in connection with one or more retirement plans or deferred compensation plans established or maintained by or for one or more employers (including partnerships or sole proprietorships), employee organizations, or any combination thereof, other than plans providing individual retirement accounts or individual retirement annuities under Section 408 of the Internal Revenue Code;

c. Premium deposit fund;

d. Investment annuity;

e. Immediate annuity;

f. Deferred annuity contract after annuity payments have commenced;

g. Reversionary annuity; or

h. Any contract which is to be delivered outside this state by an agent or other representative of the company issuing the contract.

a. When premium payments cease under a contract, the insurer will grant a paid up annuity benefit on a plan described in the contract that complies with § 7.7(B)(5) of this Part. The provision will include a statement of the mortality table, if any, and guaranteed or assumed interest rates used in calculating annuity payments.

b. If a contract provides for a limp sum settlement at maturity or at any other time, upon surrender of the contract at or prior to the commencement of any annuity payments, the insurer will pay, in lieu of any paid-up annuity benefit, a cash surrender benefit as described in the contract that complies with § 7.7(B)(6) of this Part. The contract may provide that the insurer may defer payment of such cash surrender benefit for a period of six (6) months after demand.

a. Any partial withdrawals from or partial surrender of the contract;

b. The amount of any indebtedness on the contract, including interest due and accrued;

c. An annual contract charge equal to the lesser of

d. A transaction charge of ten dollars ($10.00) for each transfer to another investment division within the same contract.

e. Guaranteed interest credits in each year for any period of time for which interest credits are guaranteed shall be reasonably related to the average guaranteed interest credits over that period of time.

f. The Minimum Nonforfeiture Amount shall be the Unadjusted Minimum Nonforfeiture Amount adjusted by the market-value adjustment formula contained in the contract.

g. The annual contract charge of thirty dollars ($30.00) and the transaction charge of ten dollars ($10.00) referenced will be adjusted to reflect changes in the Consumer Price Index in accordance with § 7.7(B)(4) of this Part.

a. With respect to contracts providing for periodic considerations, the net considerations for a given contract year used to define the Minimum Nonforfeiture Amount shall be an amount not less than zero and shall be equal to the corresponding gross considerations credited to the contract during that contract year less an annual contract charge of thirty dollars ($30.00) and less a collection charge of one dollar and twenty-five cents ($1.25) per consideration credited to the contract during that contract year and less any charges for premium taxes. The percentages of net considerations shall be sixty-five percent (65%) for the first contract year and eighty-seven and one-half percent (87 1/2%) for the second and later contract years. Notwithstanding the provisions of the preceding sentence, the percentage shall be sixty-five percent (65%) of the portion of the total net consideration for any renewal contract year which exceeds by not more than two times the sum of those portions of the net considerations in all prior contract years for which the percentage was sixty-five (65%).

b. With respect to contracts providing for a single consideration, the net consideration used to define the Minimum Nonforfeiture Amount shall be the gross consideration less a contract charge of seventy-five ($75.00) and less any charge for premium taxes. The percentage of the net consideration shall be ninety percent (90%).

c. The annual contract charge of thirty dollars ($30.00), the collection charge of one dollar and twenty-five cents ($1.25) per collection, and the single consideration contract charge of seventy-five dollars ($75.00) referred to above, will be adjusted to reflect changes in the Consumer Price Index in accordance with Paragraph 3 above.

d. The above contract charges shall be multiplied by the ratio of the Consumer Price Index for June of the calendar year preceding the date of filing, to the Consumer Price Index for June, 1979. As used here, the Consumer Price Index means such Index for all urban consumers for all items as published by the Bureau of Labor Statistics of the United States Department of Labor or any successor agency. If publication of the Consumer Price Index ceases, or if such Index otherwise becomes unavailable or is altered in such a way as to be unusable, the Director will substitute an index which the Director deems to be suitable.

a. If at the time the annuity becomes payable the larger of the Unadjusted Minimum Nonforfeiture Amount and the Minimum Nonforfeiture Amount is less than two thousand ($2,000) or would provide an income the initial amount of which is less than twenty dollars twenty ($20) per month; or

b. If, prior to the time the annuity becomes payable under a periodic payment contract, no considerations have been received under the contract for a period of two (2) full years and both

a. In the event of total and permanent disability,

b. As reversionary annuity or deferred reversionary annuity benefits, or

c. As other policy benefits additional to life insurance, endowment and annuity benefits, and considerations for all such additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender and death benefits that may be required by this section. The inclusion of such additional benefits shall not be required in any paid-up benefits, unless the additional benefits separately would require Minimum Nonforfeiture Amounts, paid-up annuity, cash surrender and death benefits.